Wire & Cable Plastics Market
Global Industry Analysis (2017 – 2020) – Growth Trends, and Market Forecast (2021 – 2025)
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5G Infrastructure Applications Generating Inevitable Demand for Fiber Optic Cables
Some exciting technological and environmentally conscious advancements are predicted to change the dynamics of the wires & cables market by the end of 2022. The primary attributes leveraging this growth will be the Internet of Things (IoT) and the demand for even faster 5G. Furthermore, urbanization in developing economies and the need for safer homes and buildings are expected to drive demand for wire & cable materials used in security and fire alarm applications.
In the coming years, Asia Pacific is expected to see rapid technological developments related driverless vehicle technology and conservation to tackle climate change. Incidentally, the fibre-based network is a building block for futuristic technologies namely 5G. Growing uptake of IoT in vehicles for better safety and high-end automation in economies such as India, Malaysia, and Philippines hold mammoth potential for wires and cables market. Thus, polymer manufacturers will have a massive window of opportunity to make product innovations and grow their market presence by distributing in these regions.
PVC and Fluoropolymer Emerge as Ideal Choices for Wires & Cables
PVC’s inherent properties make it an ideal choice for a wide range of applications. For instance, it is fire retardant and can decrease or suppress combustion in case of fires, preventing flames from spreading. Any indoor or outdoor applications of plastics in the cables must be developed with high safety standards, which is offered by PVC as the material lends insulation, strength, and protection at various operating temperatures. This is vital in the case of inner electric wires, cables, and fiber optics, which are used at very low temperatures (for underground or below the sea applications) and at very high ones (in case of powerful engines such as automotive applications).
Inherently, fluoropolymers are resistant to fire, which makes them compliant with code and insurance requirements, making them an ideal choice for energy, and oil & gas industries. Energy companies that invest heavily in recording apparatus, transmission cables, and deep well cables, require protective coating and insulation, which is delivered by fluoropolymers.
On the other hand, polyethylene is also finding immense demand from wire & cable manufacturers for jacketing and sheathing applications. Polyethylene is gradually gaining traction in HT cable application, however, cross linked PE has already substituted PVC in LT cable application.
Technological Advancements to Change the Dynamics of Wire & Cable Plastics Market
Surge in usage of wireless devices such as cameras, security systems, and smart appliances have pushed frontiers for media equipment. The constant upgrades in wireless technologies and electronic devices is generating greater demand for power and data transmission since the wattage transmitted over cabling is increasing. Such heavy transmission generated heat, when not insulated with the apt material, it can cause data degradation, thereby increasing temperatures to unsafe levels. This has led to emergence of an inevitable demand for the right plastic materials for wire & cables in the building & construction, automotive, healthcare, and various other industries.
The demand for advanced plastic materials and cable coatings for overhead power lines to protect the bare wire and prevent sparks from causing fires is also projected to add growth trajectory for plastics in the wires & cables applications. Wire and cable are the largest application areas for plastics such as polyvinyl chloride, nylon, polyethylene, and polypropylene. These plastic types are extensively used to power innumerable appliances and electrical equipment, right from fridges, washing machines, toasters, and TVs to ever-increasing popular consumer electronics such as PCs, laptops, smartphones, tablets, and other IT devices.
Infrastructural Development in Asia Pacific to be the Limelight for Wire & Cable Plastic Suppliers
Countries such as China, India, and Japan are witnessing growth in construction activities due to urbanization and shift in consumer spending capacities. Rising demand for light, power, and communications in Asia Pacific is likely to further the growth over the forecast period. This, in turn, is leading to a substantial increase in the wire & cable plastics market in several countries of the Asia Pacific region. Significant growth is also expected to be witnessed in the European wire & cable industry with initiatives such as ‘Digital Agendas for Europe-2025’. In addition, the growing use of wires and cables in the IT & telecommunication sector is estimated to drive the wire & cable plastics as well.
Companies Plan Business Expansions through Growing IT & Telecom Sector
BASF SE, SCG Chemicals Co. Ltd., LyondellBasell Industries Holdings B.V., Arkema Group, Solvay SA, SABIC, Borealis AG, Songwon Industrial Group, BLS Polymer Ltd., Lucobit AG, Hanwha Europe GmbH, Daikin America, Inc., Finolex Cables, and Formosa Plastics are some of the leading players operating in the wire & cable plastics industry. These leading market players in the wire & cable plastics market are eyeing opportunities in high-growth regions such as Russia, U.S., China, India, and Japan to expand their business in IT & telecommunication applications.
In order to proclaim a larger share in the wire & cable industry, several plastic manufacturers are making constant efforts for technological innovations in their product offerings. For instance, Finolex Cables in India, has developed radiation technology-based solar cables, auto wires for the engines, instrumentation cables using thin copper wires and telecom fibers for residential use.